“The Need For Unskilled Labor Is Beginning To Diminish”

You certainly don’t want to be a nation left behind by robotics any more than you’d want to miss out on the Industrial Revolution, but at the same time you need jobs for citizens of all skill levels. What to do?

Indian Prime Minister Narendra Modi’s goal of reducing unemployment among the nation’s many unskilled workers is threatened by automation, a sector other countries in the region (particularly Thailand, Vietnam and Malaysia) are investing heavily in. The need for cheap labor is disappearing just when the nation needs it most. From Natalie Obiko Pearson at Bloomberg:

Robots and automation are invigorating once-sleepy Indian factories, boosting productivity by carrying out low-skill tasks more efficiently. While in theory, improved output is good for economic growth, the trend is creating a headache for Prime Minister Narendra Modi: Robots are diminishing roles for unskilled laborers that he wants to put to work as part of his Make in India campaign aimed at creating jobs for the poor.

India’s largely uneducated labor force and broken educational system aren’t ready for the more complex jobs that workers need when their low-skilled roles are taken over by machines. Meanwhile, nations employing robots more quickly, such as China, are becoming even more competitive.

“The need for unskilled labor is beginning to diminish,” Akhilesh Tilotia, head of thematic research at Kotak Institutional Equities in Mumbai and author of a book on India’s demographic impact. “Whatever education we’re putting in and whatever skill development we’re potentially trying to put out – – does it match where the industry will potentially be five to 10 years hence? That linkage is reasonably broken in India.” …

In the race to create factory jobs, Modi isn’t just competing against Asian rivals. Robots are increasingly helping developed economies. In Switzerland, robots make toothbrushes for export; in Spain, they cut and pack lettuce heads — a job previously done by migrants; in Germany, they fill tubs of ice cream, and in the U.K. they assemble yogurt into multipacks at a rate of 80 a minute.

 

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